The P11D form is used by UK employers to report taxable benefits in kind provided to employees and directors, such as company cars, private medical insurance and beneficial loans.
For the 2025 to 2026 tax year, the key deadline is 6 July 2026. By this date, employers must submit P11D forms to HMRC, give employees a copy and report any Class 1A National Insurance due. Class 1A National Insurance must usually be paid by 22 July, or by 19 July if paying by cheque.
In short, if you provide non-cash benefits that are not taxed through payroll, you will usually need to complete a P11D and may also need to submit a P11D(b) to report and pay Class 1A National Insurance.
What is a P11D Form?
A P11D form is used by employers to report taxable expenses and benefits provided to employees or directors during a tax year.
These are benefits provided because of employment that are not paid as salary, such as company cars, private medical insurance, beneficial loans or living accommodation. A P11D is usually required if the benefit has not been taxed through payroll. Even if a benefit is payrolled, the employer may still need to report and pay Class 1A National Insurance through a P11D(b).
The P11D tells HMRC what benefits have been provided and what their taxable value is. HMRC can then use this information to collect the correct amount of tax from the employee or director, usually by adjusting their tax code or through Self Assessment if relevant.
Who Needs to Complete a P11D?
The employer completes the P11D, not the employee.
An employer may need to complete a separate P11D for each employee or director who received taxable expenses or benefits during the tax year, where those benefits were not already taxed through payroll.
This can apply to companies, partnerships, charities and other employers that provide taxable benefits to staff or directors.
When a P11D May Be Needed
A P11D may be needed where:
- An employee has a company car available for private use
- An employee receives fuel for private use
- The employer pays for private medical insurance
- A director receives a beneficial loan from the company
- Living accommodation is provided
- Business assets are made available for personal use
- Vouchers or credit cards are provided
- Professional subscriptions are paid by the employer
- Expenses are reimbursed but are not fully exempt
Note
Small limited companies should pay particular attention to P11D reporting. Director benefits are often missed, especially where the company pays for medical insurance, provides a car or allows a director to use company assets personally. Even where there are only one or two directors, the company may still have P11D and P11D(b) obligations.
When a P11D May Not Be Needed
A P11D may not be needed where:
- The benefit has already been correctly payrolled
- The item is fully exempt
- The benefit qualifies as a trivial benefit
- No taxable expenses or benefits were provided
- The expense is covered by a statutory exemption
Employers should check the relevant rules before treating a benefit as exempt, especially for directors of close companies where reporting can be more sensitive. HMRC provides detailed guidance on which expenses and benefits are taxable or exempt at Expenses and benefits: A to Z – GOV.UK
Benefits in Kind & Class 1A National Insurance
Benefits in kind are non-cash benefits provided to an employee or director because of their employment. They have personal value to the individual, even though they are not paid as salary.
Two consequences follow from a benefit in kind. The employee or director faces an income tax charge on the value of the benefit. The employer often faces a Class 1A National Insurance charge on the same value.
Note
Class 1A National Insurance is an employer-only charge on most benefits in kind reported on P11D forms. It appears in P11D reporting because employers must declare and pay this National Insurance on the value of those benefits, separately from Class 1 NIC, which applies to salaries and wages through payroll.
Common Benefits That Go on a P11D
Use the table below as a quick reference for the benefits that appear most often, whether Class 1A National Insurance usually applies, and the point to watch on each.
Benefit | Usually Reportable on P11D? | Class 1A NIC Usually Applies? | Notes |
Company car | Yes | Yes | Value set by HMRC car benefit rules, based on list price and CO2 emissions
|
Fuel for private use | Yes | Yes | Separate fuel benefit charge on top of the car benefit
|
Private medical insurance | Yes | Yes | Full employer premium is taxable, including cover for family members
|
Beneficial loan | Yes | Usually yes | Reportable where the total exceeds £10,000 at any point in the year
|
Living accommodation | Yes | Usually yes | Calculations are often complex and depend on the property
|
Assets made available | Yes | Usually yes | Value based on private use and the asset’s worth
|
Trivial benefits | Usually no | Usually no | Exempt only where every condition is met |
P11D(b) & Class 1A National Insurance
Many reportable benefits carry an employer Class 1A National Insurance cost as well as an employee tax charge.
What is Class 1A National Insurance?
Class 1A National Insurance is the employer’s contribution on many taxable benefits in kind. It is paid by the employer, not by the employee.
The employee may pay income tax on the benefit, but Class 1A National Insurance is the employer’s liability. It is reported through the P11D(b), which declares the employer’s total Class 1A National Insurance due on relevant benefits.
P11D vs P11D(b)
The two forms do different jobs and are usually prepared as part of the same year end benefits reporting process.
Form | Purpose | Who It Relates To | What It Reports |
P11D | Reports taxable benefits and expenses | Individual employee or director | Benefits in kind and reportable expenses |
P11D(b) | Reports employer Class 1A NIC | Employer or PAYE scheme | Total Class 1A NIC due across all benefits |
An employer with non-payrolled taxable benefits will usually need P11Ds for the affected employees or directors and may also need a P11D(b) where Class 1A National Insurance is due. One P11D goes in for each individual who received benefits, and a single P11D(b) summarises the Class 1A National Insurance for the whole scheme.
Common P11D(b) Mistake
A common mistake is to prepare the P11Ds but forget the P11D(b). Another common mistake is to assume that payrolling benefits removes all year end reporting.
If all expenses and benefits are payrolled, employers do not need to report them for each employee at the end of the tax year, but they must still submit P11D(b) for Class 1A National Insurance.
Without it, HMRC has no declaration of the Class 1A liability, and the automatic penalty regime attaches to the missing P11D(b).
P11D Deadline 2026
Every 2025/26 deadline sits in the table below.
Requirement | Deadline |
Submit P11D forms to HMRC | 6 July 2026 |
Give employees copies of their P11D | 6 July 2026 |
Submit P11D(b) | 6 July 2026 |
Pay Class 1A NIC electronically | 22 July 2026 |
Pay Class 1A NIC by cheque | 19 July 2026 |
Late Filing Penalties
HMRC may charge penalties if the P11D(b) is late. HMRC guidance states that the penalty is £100 per 50 employees for each month or part month the P11D(b) is late. Penalties and interest may also apply if payment to HMRC is late.
How to Submit a P11D Form
Filing is online only. HMRC no longer accepts paper P11D or P11D(b) forms. Employers with fewer than 500 employees can submit the forms through HMRC’s PAYE Online service. Employers with more than 500 employees should submit the forms through payroll software.
Things to Consider Before Submitting
Before submitting, employers should check that:
- Each employee or director has been reviewed
- Payrolled and non-payrolled benefits have been separated
- Benefit values have been calculated correctly
- Class 1A National Insurance has been considered
- The P11D(b) figure is complete
- Employee copies are ready
- Supporting records have been retained
Correcting Errors
If an error is discovered after submission, it should be corrected. HMRC provides online correction forms for both P11D and P11D(b).
Where correcting a P11D(b), the amended form should show the total Class 1A National Insurance that needs to be paid, not just the difference from the previous version.
Records to Keep
Employers should keep records to support the figures submitted. These may include invoices, payroll records, car details, insurance premiums, loan records, accommodation details and evidence for exemptions.
Good records are important because HMRC may ask how a benefit value was calculated or why a particular item was excluded from P11D reporting.
Payrolling Benefits in Kind & P11D Reporting
Payrolling a benefit means taxing it through PAYE during the year, so the income tax comes out of the employee’s pay each period rather than being reported once on a P11D.
Where a benefit has been payrolled, no P11D is needed for that benefit. The tax has already been collected in real time.
Class 1A National Insurance is different. Payrolling a benefit may remove the need for a P11D for that benefit, but it does not remove the employer’s Class 1A National Insurance obligation. The P11D(b) is still required to declare the Class 1A due, whether the benefits were payrolled or not.
How to Calculate Benefits in Kind for P11D
Each benefit has its own valuation rule, and the taxable figure is usually called the cash equivalent. This is the value that goes on the P11D and feeds the Class 1A National Insurance on the P11D(b), so getting it right matters for both the employee’s tax and the employer’s bill.
Company Cars
Company cars are the most common and the most detailed. The cash equivalent is the car’s list price multiplied by a percentage set by its CO2 emissions, which is why a fully electric car produces a far smaller benefit than a petrol equivalent. Where the employer also pays for private fuel, a separate fuel benefit charge applies on top, based on a fixed multiplier rather than actual fuel used.
Private Medical Insurance
Private medical insurance is valued at the premium the employer paid, including any cover for the employee’s family, less anything the employee contributed.
Beneficial Loans
Beneficial loans are charged only where the total outstanding across all loans exceeds £10,000 at any point in the year. Below that, the small-loan exemption means there is nothing to report. Above it, the cash equivalent is the interest that would have been due at HMRC’s official rate, less any interest the employee actually paid. The official rate rose to 3.75% from 6 April 2025, up from 2.25%, and HMRC now reviews it quarterly rather than setting it once a year. A rate that can change mid-year means a loan may need to be calculated separately for each period and the results added together, so the reporting date the rate applied on matters. HMRC publishes the current and historic figures in its beneficial loan arrangements guidance on gov.uk.
Living Accommodation
Living accommodation follows its own rules and can be complex, with an additional charge where the property cost more than £75,000.
For the underlying method on each benefit, HMRC’s P11D working sheets on gov.uk set out the calculation step by step and are the safest reference where a benefit is anything other than straightforward.
P11D checklist for employers, accountants and bookkeepers
Before the 6 July 2026 deadline, employers and advisers should complete a structured P11D review.
1. Employee &Director Review
Start by identifying every employee and director who received benefits during the tax year.
Do not forget directors of small companies, leavers, part-year employees, and employees who received a one-off benefit.
2.Benefit Review
Separate benefits into payrolled and non-payrolled categories.
Review:
- Company cars and private fuel
- Private medical insurance
- Director loans and beneficial loans
- Living accommodation
- Assets made available for private use
- Vouchers and credit cards
- Professional subscriptions
- Reimbursed expenses
- Exempt benefits
- Trivial benefits
Benefits that were correctly payrolled may not need a P11D, but Class 1A National Insurance may still need to be reported through P11D(b).
3. Calculation &Submission Review
Calculate taxable benefit values and Class 1A National Insurance.
Check that the P11D(b) agrees with the total Class 1A National Insurance due.
Prepare P11Ds for relevant employees and directors. Prepare the P11D(b) for the employer. Give employees their copies by 6 July 2026 and submit the forms to HMRC by the same date.
Arrange payment of Class 1A National Insurance by the correct deadline. For electronic payments, the deadline is 22 July 2026. For cheque payments, the deadline is 19 July 2026.
Finally, retain records and review whether benefit reporting should be improved for the next tax year.
Common P11D Mistakes to Avoid
P11D errors are common because benefits reporting often depends on payroll records, director records, expenses data and year end calculations.
1.Missing Directors
Directors of small limited companies often receive benefits such as medical insurance, cars or beneficial loans, but these are sometimes overlooked because there are no wider employees.
2. Forgetting P11D(b)
The P11D reports employee level benefits, but the P11D(b) reports the employer’s Class 1A National Insurance. Employers should check whether both are required.
3. Assuming Payrolled Benefits Remove All Reporting
Payrolled benefits may remove the need for a P11D for that benefit, but Class 1A National Insurance may still need to be reported through P11D(b).
4. Incorrect Car & Fuel Calculations
Company car and fuel calculations can be detailed. Employers should check car details carefully and confirm whether private fuel was actually provided.
5. Treating Benefits As Exempt Without Checking
Exemptions can be valuable, but they must be applied correctly. Employers should keep evidence showing why the exemption applies.
6. Poor Record Keeping
If HMRC queries the figures, the employer should be able to show how the values were calculated and why any exemptions were applied.
Preparing Clients Before the Deadline for Accountants & Bookkeepers
The deadline is won or lost on data collection, not filing. A standard approach across the client base removes the June scramble.
Send an annual P11D questionnaire to every employer client and collect the benefit evidence early rather than chasing it in the final fortnight. Confirm each client’s PAYE scheme details before filing, since a mismatched or abbreviated business name can cause a submission to fail.
Standardise how benefit data comes in, so company car details, medical premiums and loan balances arrive in the same format every year. Reconcile the P11D(b) against payroll records before submitting, which catches the payrolled-benefit and Class 1A gaps before HMRC does.
Then look forward. Identify which clients should consider payrolling benefits in future years, and start the conversation now.
Conclusion
File the 2025 to 2026 P11D and P11D(b) by 6 July 2026, and pay the Class 1A National Insurance by 22 July 2026 if paying electronically.
Late filing, incorrect returns and late Class 1A National Insurance payments can lead to penalties and interest. Employers should gather the benefit data early, check every exemption carefully and confirm the Class 1A National Insurance position before filing.
Treat this as a transition year for benefits reporting, especially where clients or employers are moving towards payrolling benefits in kind.
FAQs
Yes. The value of a benefit reported on your P11D is treated as additional employment income and taxed at your marginal rate. HMRC usually collects it by adjusting your tax code for the following year, so more tax comes out of your pay, or through your Self Assessment return if you file one. You do not pay National Insurance on the benefit itself, because the employee has no NIC charge on benefits in kind
Two parties pay, on two different charges. The employee or director pays the income tax on the benefit, through their tax code or Self Assessment. The employer pays the Class 1A National Insurance on the same benefits, at 15% for 2025/26, declared on the P11D(b). The employer files both forms, but the income tax burden sits with the individual.
No. A payslip records the pay and deductions for a single pay period during the year. A P11D is an annual summary of the taxable benefits in kind an employee received across the whole tax year, filed after the year ends. They serve different purposes: the payslip tracks cash pay processed through payroll, while the P11D reports non-cash benefits that were not taxed through payroll.
Not directly. If you provide taxable benefits to employees or directors, you should check whether you need to register as an employer and operate a PAYE scheme before reporting P11D benefits. Registering opens the scheme through which the P11D and P11D(b) are filed. The Class 1A National Insurance is still due whether or not a scheme was already in place, so operating without one does not remove the liability.
It depends on when you left. If you were employed on 5 April, the last day of the tax year, your employer must send you a P11D by 6 July, even if you left before then. If you left earlier in the year, you are not sent one automatically, but you can request it in writing within three years of the tax year end, and the employer must provide it within 30 days or by the following 6 July, whichever is later.
